The announcement was made within the framework of the second Global Gateway Forum in Brussels (Belgium) from October 9 to 10.

The European Union (EU) on October 9 announced a €430 million ($497.5
million) support package for the Bac Ai pumped storage hydropower plant project
in Vietnam’s central Khanh Hoa province – one of the country’s key initiatives under the Just Energy
Transition Partnership (JETP).

The announcement was made within the framework of the second Global Gateway
Forum, held in Brussels (Belgium) from October 9 to 10. Attending the announcement ceremony were Vietnam’s Deputy Prime Minister Bui Thanh Son, European Commissioner for Energy Jozef Síkela, along with representatives from participating countries and partners of the Forum.

The package is part of the Team Europe Initiatives, comprising the EU, its member states, and development finance institutions including the French Development Agency (AFD), the European
Investment Bank (EIB), the Germany’s KfW Development Bank (KfW), the Italian National Promotional Institution (CDP), and PROPARCO – the private sector
investment arm of AFD.

European Commissioner for Energy Jozef Síkela emphasized that the Bac
Ai project serves as a key foundation in the joint efforts of Vietnam and
Europe to build a green, stable, and sustainable energy system while attracting
private investment and fostering green growth. 

The Bac Ai pumped storage hydropower plant project is expected to enhance
the stability of Vietnam’s national power grid, enable large-scale renewable
energy development, and contribute to the country’s goals of carbon emission
reduction and sustainable development.

For the 2021- 2027 period, the EU has committed to supporting Vietnam with
at least €293 million ($338.9 million), while total contributions from European
partners exceed €2.8 billion ($3.23 billion) for JETP. This investment will
help advance green infrastructure, promote sustainable energy transition, and
strengthen power connectivity across the ASEAN region.

vneconomy-Phuong Hoa